Magnite (MGNI): Evaluating Valuation After Launching Pause Ads With Top Streaming Partners

Magnite (MGNI) just unveiled a fresh twist in the connected TV advertising space by rolling out Pause Ads across some of the biggest streaming names, including DIRECTV, DISH Media, and Fubo. The launch is positioned as an upgrade to their already innovative ad lineup, aiming to give brands a more immersive shot at capturing viewer attention during those instinctive breaks in streaming. With well-known partners like KERV.ai, MNTN, and Yahoo DSP on board, and the product fitting smoothly into Magnite’s automation tools, the move signals a push to make advertising more engaging for buyers while helping publishers tap into greater revenue streams.

This product expansion comes against a backdrop of sustained momentum for Magnite. Over the past year, the company’s share price has climbed 96% and is up 57% for the year so far, far outpacing many of its digital advertising peers. The recent months have also seen Magnite’s ad formats evolve to catch shifting trends in viewer behavior, which the market appears to read as a signal that growth potential is still very much in play.

With shares riding high after yet another new launch, some investors may be wondering whether this is an opportunity to buy in before further upside or if the stock already reflects the company’s future growth ambitions.

Most Popular Narrative: 10.1% Undervalued

According to the narrative, Magnite is considered undervalued relative to its estimated fair value. This assessment is based on expectations for robust earnings and margin growth, with analysts looking closely at how digital and connected TV trends could reshape profit potential over the next several years.

Magnite is positioned to benefit from the accelerating shift of ad spend from traditional TV to digital and connected TV (CTV) platforms, as evidenced by deepened partnerships with top streamers (Roku, Netflix, LG, Warner Bros. Discovery, Paramount) and expanding SMB participation in CTV, which is expected to drive sustained revenue growth and a higher-margin business mix.

Curious how analysts arrived at this bullish valuation? There is more to the story than just partnerships and platform plans. A handful of aggressive projections around profit and revenue growth power this target. Details the broader market might be underestimating are also considered. Want the full blueprint behind the price? The narrative unlocks all the key assumptions that support its striking estimate.

Result: Fair Value of $28.19 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks such as a slowdown in digital ad migration or reliance on a handful of major streaming partners could quickly challenge the positive outlook.

Find out about the key risks to this Magnite narrative.

Another View: Market Multiple Sends a Different Signal

While the first analysis points to Magnite being undervalued, a look at how it trades compared to the industry shows a much higher valuation. This raises questions about whether the market is already pricing in future growth. Which view will prove right?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Magnite to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Magnite Narrative

If you have a different perspective or want to dig deeper into the numbers, there's nothing stopping you from creating your own view in just a few minutes. Do it your way.

A great starting point for your Magnite research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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